Can a jeweler legally charge me for an engagement ring I have not received despite writing out a “receipt” for it?

Long story short — I was interested in doing business with a jeweler for an engagement ring. I expressed interest in one, in which he apparently, “Took $1300 out of his own pocket,” to size correctly for me. I left that day without any kind of down payment, but he did write out a receipt for the full amount (diamond included) for around $8500. The deal fell through, I found another jeweler I enjoyed doing business with. The aforementioned hounded me for months by call and text. They removed the diamond, but still wants me to pay the $1300 for the setting he “paid out of pocket” for. Am I obligated to pay a penny of this? Thank you for your help.